Banking Regulation and Monetary Policy

The tagline 'Where every individual is committed' is actually Bank of India's tagline, not Bank of Rajasthan's. Therefore the statement is False. Bank of Rajasthan had a different tagline altogether.

BIS has multiple valid meanings: Bureau of Indian Standards (India's quality standards body), Bank for International Settlements (global financial institution), and British Information Service (plausible). Option D 'Board of Indian Standards' is incorrect as it's 'Bureau' not 'Board'.

RBI stands for Reserve Bank of India, India's central banking institution. Option A is correct. Options B, C, and D are incorrect - 'Railway Bank' and 'Road Bank' are not real institutions.

India indeed had a 2.5 rupee note in circulation. It was introduced in the 1950s and printed until the 1970s. The note featured the Ashoka Pillar and was eventually discontinued as decimal currency became standard.

Under the Foreign Exchange Management Act (FEMA), Indian currency notes (rupees) are generally prohibited from being exported out of India. While small amounts (up to Rs. 25,000 for certain travelers) were previously permitted, current regulations strictly forbid taking Indian currency abroad, making this statement true.

In its November 2, 2010 monetary policy review, RBI kept both the Cash Reserve Ratio (CRR) and Bank Rate unchanged while revising the repo and reverse repo rates. This was a calibrated approach where RBI signaled policy stance through short-term rates (repo/reverse repo) while maintaining stability in other key rates.

RBI stands for Reserve Bank of India, which is India's central bank responsible for monetary policy and regulating the banking system. It was established in 1935 and nationalized in 1949. The other options incorrectly use Regional, Resected, or Religious instead of Reserve.

The Reserve Bank of India's accounting year runs from April 1 to March 31, following the Indian financial year pattern. This is the standard fiscal year for Indian government and financial institutions. Option C (April-March) is correct.

When RBI lowers the Cash Reserve Ratio (CRR), banks are required to keep less cash with the RBI, freeing up more funds for lending. This increases the money multiplier effect, allowing banks to create more credit and expand lending capacity in the economy. A lower CRR is an expansionary monetary policy.

C R Bhansali operated a massive financial fraud through CRB Capital Markets, CRB Mutual Fund, and CRB Share Custodial Services from 1992-1996, collecting around 1200 crore from the public via fixed deposits, bonds, and debentures before transferring funds to fictitious companies. Harshad Mehta was involved in the 1992 securities scam, while Kalmadi and Raja are associated with different scams (CWG and 2G respectively).

RBI (Reserve Bank of India) is the odd one out as it is the central banking institution of India and the regulatory authority, whereas SBI (State Bank of India), CBI (Central Bureau of Investigation), and BOI (Bank of India) are all organizations that operate under various regulatory frameworks. While CBI is not a bank, RBI stands out as the monetary policy regulator.

An upward revision in Bank Rate leads to increase in PLR, thereby adversely impacting the amount payable by borrowers on account of increase in lending rate. Hence, EMI increases.

Repo rate is the rate at which RBI lends to commercial bank. An increase in reverse repo rate ensures better return to banks and hence, they prefer to park their excess liquidity with RBI.             SLR is an obligation on the part of commercial bank to maintain quite a good chunk of their resources in liquid shape. Hence, the bank has to park a large amount of liquid money with them.

Bank rate, ratio and OMO come under quantitative measures, whereas stipulating margin requirement is classified under qualitative measures. Hence, option (3) is incorrect.

NDTL stands for Net Demand and Time Liabilities. It comprises of time and demand deposits and certain percentage of these have to be deposited as cash reserve ratio.